Welcome to the Weekly Market Update!

Welcome to this week’s edition of the Weekly Trading Insight! As we navigate through a dynamic market landscape influenced by technological advancements and key economic indicators, our aim is to equip you with the necessary insights to make informed trading decisions. This week, we delve into the latest market data, highlight significant trends, and identify opportunities that lie ahead.

Market Recap

1. US 30: Closed at 39,327.50, up by 19.5 points or 0.05%.

2. US 500: Ended the week at 5,560.10, up by 23.1 points or 0.42%.

3. Dow Jones Industrial Average: Increased to 39,375.87, up by 67.87 points or 0.17%.

4. S&P 500: Finished at 5,567.19, up by 30.17 points or 0.54%.

5. Nasdaq Composite: Closed at 18,351.34, up by 163.04 points or 0.90%.

6. S&P 500 VIX: Decreased to 12.48, down by 0.72 points or 5.45%.

7. Dollar Index: Decreased to 104.54, down by 0.537 points or 0.51%.

Feature Analysis: Two Potential Risks to the AI Technology Rally

Yardeni Research warns that excessive funding and overhyped expectations could derail the AI tech rally. With $330 billion invested in 26,000 startups, many companies struggle to profit, risking quick revenue drops if funds dry up. Bold claims from industry leaders, like Nvidia’s CEO, suggest a bubble, urging investors to remain cautious.

Trading Strategies and Ideas

• S&P 500 Equal Weight Index: The S&P 500 Equal Weight Index has been underperforming the broader S&P 500 since March, currently hovering around two-month lows. It recently dropped below its 100-day Simple Moving Average, suggesting a bearish outlook despite the broader market hitting fresh highs. Near-term technical translation: slightly bearish.

• Nasdaq Composite Index: Tech stocks have driven the Nasdaq to new all-time highs, up 3.38% for the week. While momentum remains strong, the index is overbought with an RSI of 75 and trading above the upper Bollinger Band, indicating a potential pullback. Near-term technical translation: intermediate-term bullish, near-term cautious.

Upcoming Events to Watch

• Monday (July 8): Consumer Credit

• Wednesday (July 10): EIA Crude Oil Inventories, MBA Mortgage Applications Index, Wholesale Inventories

• Thursday (July 11): Continuing Claims, Consumer Price Index (CPI), Core CPI, EIA Natural Gas Inventories, Initial Claims, Treasury Budget

• Friday (July 12): Producer Price Index (PPI), Core PPI, University of Michigan Consumer Sentiment – Preliminary.

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Remember to stay informed, adapt to market conditions, and focus on disciplined trading practices. Your success is our top priority, and we’re here to support your journey.

Disclaimer

This newsletter is for informational purposes only and does not constitute financial advice. Always do your own research and consider consulting a financial advisor.

Thank you for reading! Wishing you successful trades ahead!